How to Handle Rent Arrears Under the New Renters’ Rights Bill

The Renters’ Rights Bill 2025 introduces new rules for landlords dealing with tenants who fail to pay rent. With the end of Section 21 no-fault evictions, the government has restructured the eviction process to make Section 8 rent arrears the main legal route for landlords seeking possession due to non-payment.

Understanding how to handle rent arrears eviction cases in 2025 under the new framework is essential to recover your property lawfully and efficiently.

The End of No-Fault Evictions and the Rise of Section 8

The abolition of Section 21 means landlords can no longer evict tenants without giving a valid reason. For rent arrears, the legal pathway is now firmly through Section 8, which has been updated under the Renters’ Rights Bill 2025.

This change ensures tenants cannot be evicted arbitrarily, while also giving landlords clearer, legally defined grounds for eviction due to non-payment.

The government has recognised that rent arrears remain one of the most serious breaches of tenancy, and the law now provides landlords with structured protection in such cases.

Can I Still Evict Tenants Who Don’t Pay Rent?

Yes. Landlords can still evict tenants for non-payment of rent, but they must follow the new Section 8 process precisely. Under the rent arrears eviction 2025 rules, landlords can seek possession if:

The tenant is in serious rent arrears (usually more than two months).
The tenant has persistently failed to pay rent on time, even if arrears are occasionally reduced.
The arrears are not caused by temporary issues such as delayed benefits or verified hardship.

These grounds ensure landlords have legal recourse while balancing fairness to tenants experiencing short-term financial difficulties.

There are two main types of Section 8 grounds relevant to rent arrears:

Mandatory Grounds – If the tenant owes two or more months’ rent at the date of the hearing, the court must grant possession.
Discretionary Grounds – If the arrears are less than two months or have fluctuated, the court may still grant possession based on the tenant’s payment history and conduct.

In both cases, documentation and evidence are vital. Landlords must show clear rent statements, written communication, and compliance with all legal notice requirements.

Has the Arrears Threshold Changed?

Yes. The Renters’ Rights Bill 2025 adjusts how rent arrears are calculated and when landlords can act. The old rule requiring two full months of unpaid rent remains the benchmark, but the new law adds flexibility for persistent arrears.

Under the updated framework:

Landlords can take action if the tenant has been in arrears for at least two separate months within 12 months, even if the arrears are later partially paid off.
Courts will now consider a tenant’s pattern of non-payment, not just their current balance.
If arrears remain above two months at the time of the court hearing, possession will still be mandatory.

This reform closes a long-standing loophole that allowed tenants to repeatedly make small payments to stay just below the eviction threshold. It now gives landlords a stronger position against chronic late payers.

What New Notice Periods Apply?

The Renters’ Rights Bill 2025 standardises notice periods for all Section 8 rent arrears claims. The new default notice period for rent arrears remains two weeks, but certain circumstances may extend this.

Key notice periods include:

Two weeks’ notice for tenants with serious rent arrears (two months or more).
Four weeks’ notice in cases of repeated short-term arrears or discretionary grounds.
Immediate notice for extreme cases involving fraud, criminal conduct, or deliberate non-payment.

Notices must be served using the official government Section 8 notice form, now updated for the 2025 legislation. The notice must specify the grounds being relied upon, detail the arrears amount, and include the required time period before court proceedings can begin.

Step-by-Step Process for Eviction Due to Rent Arrears

Landlords must now follow a structured process for eviction for non-payment to ensure compliance with the new law:

Communicate Early

Before issuing any notice, contact the tenant in writing to discuss the arrears. Courts expect evidence that landlords made reasonable attempts to resolve the issue informally.

Serve a Valid Section 8 Notice

Complete the correct notice form, clearly stating the arrears amount and legal grounds. Serve it in person or by recorded delivery, and keep proof of service.

Wait for the Required Notice Period

Depending on the grounds, wait two or four weeks before proceeding. If the tenant pays the full arrears during this time, the case may no longer qualify for possession.

Apply to the Court for Possession

If the arrears remain, file a possession claim. The digital court system, introduced under the Renters’ Rights Bill, allows landlords to submit and track claims online.

Attend the Hearing (If Required)

Bring all evidence, rent statements, communication logs, tenancy agreements, and compliance certificates. The judge will review the grounds and decide whether to grant possession.

Enforce the Order

If granted, the court will set a date for possession. If the tenant refuses to leave, landlords can request a warrant for bailiffs or High Court enforcement.

Practical Tips to Prevent and Manage Rent Arrears

While eviction remains a last resort, landlords can reduce risk by adopting proactive management strategies:

Conduct thorough tenant referencing before granting a tenancy.
Encourage tenants to set up automated rent payments.
Keep clear written records of all payments and arrears.
Communicate regularly to identify financial issues early.
Offer repayment plans for short-term arrears, documented in writing.

Maintaining professional, open communication can often resolve arrears before they escalate into court action.

What Happens If a Tenant Claims Hardship?

The new legislation introduces stronger tenant protections in genuine hardship cases. If a tenant provides evidence of unavoidable financial distress, such as job loss or delayed benefit payments, courts may adjourn proceedings to allow repayment.

However, this protection is not open-ended. Persistent or deliberate non-payment remains a breach of contract, and courts will prioritise landlords’ rights to recover possession where necessary.

How the Courts Are Changing

The Renters’ Rights Bill 2025 also introduces court modernisation measures to reduce delays. Landlords can now:

Submit claims and documents online.
Access faster hearings for mandatory grounds.
Track case progress digitally.

This should improve efficiency, although initial backlogs are expected during the transition. Accurate documentation and compliance will remain key to success in rent arrears cases.

Common Landlord Questions Answered

Can I still evict tenants who don’t pay rent?

Yes, landlords can evict tenants for rent arrears under Section 8 grounds. The process is now more straightforward, but you must follow the legal procedures exactly.

Has the arrears threshold changed?

Yes. Persistent arrears now count even if tenants temporarily reduce the debt. If tenants owe two or more months’ rent at the hearing, eviction is mandatory.

What new notice periods apply?

The standard notice period remains two weeks, though some instances may require four weeks depending on the grounds.

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Need help now? Contact Landlord Advice UK today for tailored guidance and practical support to future-proof your rental business.